Question: an extended recessionary period is indicative of
The answer is: An extended recessionary period is indicative of depression.
A recession is a temporary slowdown in economic activity. The term is sometimes used as a synonym for depression, but typically refers to short-lived dips in the business cycle. A depression is an extended period of below-normal economic growth, where each successive recession lasts longer than the previous one and it takes a relatively long time for the economy to recover.
Related Questions
Q- What is economic depression?
Economic depression is a situation in which there’s a sustained period of long-term unemployment and a general slowdown in economic activity. It can also be known as a deep recession.
Economic depression is usually associated with severe recessions or even with depressions, which are periods of prolonged low economic activity, usually caused by the price level falling and output remaining below the normal level.
The term “depression” has been used since the early 18th century to refer to an economic downturn that lasts for several years. In 1797, English economist William Thornton wrote an essay titled “An Enquiry into the Causes and Effects of the Varieties of Money”, in which he argued that a prolonged period of easy money and credit had created an artificial boom that would inevitably lead to a bust. Thornton predicted that this would cause “general distress,” but said that this was necessary in order to clear away bad investments before the economy could recover.
Q- what is extended recessionary period?
Extended recessionary period is a period when a country’s economy is in recession for a long time. The phrase “extended recession” is sometimes used interchangeably with the term “depression,” although economists do not consider all depressions to be extended recessions.
Recessions are periods of economic decline that last for at least six months and can last up to two years. The most recent economic downturn in the United States, which began in December 2007, was one of the longest recessions since World War II. It lasted 18 months before turning into an expansionary phase in June 2009, according to data compiled by the National Bureau of Economic Research (NBER).